ABSTRACT
The corporate production circuit matured in the West achieving the golden period of Western capitalism and was replicated in the developing countries in the post-war period through the institutional evolution of endogenous credit money creation, removing the golden fetters, Keynesianism income generation through government fiscal deficits, and Bretton Woods international monetary management. The golden period did not last long. Crisis appeared as stagflation in the 1970s with declining productivity and stagnating demand for industrial products. The limits to further expand the saturated current consumption of goods and services through current incomes imposed limits to growth required by the growing financial capital accumulation. The chart provided in the chapter illustrates that the circuit remained basically the same, with foreign exchange reserve replacing the earlier gold reserve and fiat money replacing the Gold Standard money, with an added feature of credit creation. Creditisation overcomes the earlier liquidity problems, but where to invest the accumulating financial capital? To this problem is added the growing indebtedness of developing countries with accumulating balance of payment and fiscal deficits, resulting from the expansion of the circuits of the West. In the economic turmoil of the 1970s and 1980s, another evolution was awaited by the corporate economic circuits.
